UBS Wealth Mgmt Predicts CN-US Talks to Focus on Export Controls, Urges Building Diversified AI Exposure Amid Uncertainty
The UBS Global Wealth Management Chief Investment Office (CIO) has released a report predicting that upcoming China-US talks may center on export controls. Although details remain unclear, the US is expected to ease some export restrictions, especially those recently imposed on chip design software.
While restrictions on low-end AI chips may be relaxed, high-end chips are likely to stay under strict control. UBS believed that these measures could help stabilize China-US trade relations, but achieving a lasting solution would still be challenging.
Regarding suggestions for investors, UBS recommended building diversified AI exposure amid uncertainty since AI computing expenditures may normalize in the coming years after a period of exponential growth.
Currently, AI computing accounts for about 60% of global AI capital spending, but as other sectors, including high-bandwidth memory, networking, and industrial AI applications like power and liquid cooling, benefit from increased AI investment, the share of AI computing will likely drop to 50-55% over the next few years, suggesting that revenue growth in the AI computing industry will return to a more normalized pace, with the CAGR falling from 120% in 2023-25 to 20% over the next five years.
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AAStocks Financial News
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| Stock & Type |
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Last |
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60826 |
1.24 (1.3) |
0.054 |
5.6 X |
| SENTM (Bull) |
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0.072 |
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| HKEX (Bull) |
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388 (390) |
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15.0 X |
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378.5 (380.5) |
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11.7 X |
| HKEX (Bear) |
58279 |
450 (448) |
0.073 |
11.3 X |
| HKEX (Bear) |
60254 |
430 (428) |
0.034 |
24.3 X |
| TENCT (C) |
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13.3 X |
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15.1 X |
| TENCT (C) |
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501.49 (-) |
0.226 |
11.1 X |
| TENCT (P) |
16597 |
443.13 (-) |
0.061 |
13.6 X |
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16902 |
417.98 (-) |
0.072 |
9.8 X |
| TENCT (Bull) |
69176 |
474.5 (477.5) |
0.052 |
19.1 X |
| TENCT (Bull) |
67405 |
463 (466) |
0.076 |
13.1 X |
| TENCT (Bear) |
57427 |
531 (528) |
0.055 |
18.1 X |
| TENCT (Bear) |
60438 |
525 (522) |
0.045 |
22.1 X |
| SMIC (C) |
13779 |
56.8 (-) |
0.034 |
6.4 X |
| SMIC (C) |
13298 |
52 (-) |
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| SMIC (P) |
14215 |
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0.126 |
2.6 X |
| SMIC (P) |
13196 |
33 (-) |
0.093 |
1.9 X |
| SMIC (Bull) |
67786 |
38.4 (39) |
0.061 |
7.2 X |
| SMIC (Bull) |
62196 |
35.9 (36.5) |
0.085 |
5.2 X |
| SMIC (Bear) |
61487 |
52.6 (52) |
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| SMIC (Bear) |
61769 |
50.1 (49.5) |
0.053 |
8.3 X |
| HUAHO (C) |
17846 |
42.55 (-) |
0.159 |
2.5 X |
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13221 |
38.93 (-) |
0.069 |
4.8 X |
| HUAHO (Bull) |
55869 |
26.2 (28) |
0.099 |
3.6 X |
| BAIDU (C) |
29131 |
120.1 (-) |
0.016 |
10.1 X |
| BAIDU (C) |
25923 |
105.1 (-) |
0.045 |
6.0 X |
| BAIDU (P) |
15117 |
78.83 (-) |
0.132 |
4.2 X |
| BAIDU (Bull) |
60844 |
76.8 (78.8) |
0.102 |
8.4 X |
| BAIDU (Bull) |
59989 |
70 (72) |
0.172 |
5.0 X |
| ALIBA (C) |
16291 |
125.1 (-) |
0.044 |
7.1 X |
| ALIBA (C) |
16083 |
118.98 (-) |
0.034 |
9.2 X |
| ALIBA (C) |
13267 |
112.6 (-) |
0.177 |
5.6 X |
| ALIBA (C) |
29058 |
110.3 (-) |
0.118 |
7.9 X |
| ALIBA (P) |
13581 |
98.94 (-) |
0.064 |
5.6 X |
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27782 |
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65010 |
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15.0 X |
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63768 |
96.5 (98) |
0.092 |
11.4 X |
| ALIBA (Bear) |
56934 |
124 (122.5) |
0.161 |
6.5 X |
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63569 |
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